Bankers' Books Evidence Bill 2026 passed: What the law changes, key takeaways from FM Sitharaman's reply
The Rajya Sabha on Monday passed the Bankers' Books Evidence Bill, 2026, which seeks to replace the 1891 legislation governing the use of banking records
The Rajya Sabha on Monday passed the Bankers' Books Evidence Bill, 2026, which seeks to replace the 1891 legislation governing the use of banking records as evidence in legal proceedings and bring the law in line with the digital transformation of the banking sector. The Bill, which was passed by the Lok Sabha on August 5, was approved by voice vote in the Upper House. Replying to the debate, Finance Minister Nirmala Sitharaman said the new legislation would provide a technology-neutral legal framework for bankers' books and recognise records maintained in physical, electronic, digital, virtual or cloud-based formats. Quick answers to key questions • 5 QUESTIONS 1 What are the key changes introduced by the Bankers' Books Evidence Bill 2026? ⌵ The Bill updates the definition of 'bankers' books' to include electronic and digital records, establishes admissibility conditions for these records as evidence, and introduces authentication through digital signatures. 2 Why was the Bankers' Books Evidence Act 1891 replaced? ⌵ The 1891 Act was outdated, relying on a paper-based banking system, while the current digital banking environment requires a legal framework that accommodates electronic and digital banking records. 3 How will the new Bill affect the privacy of banking customers?
⌵ The Bill aims to strengthen public confidence by providing a transparent legal framework that safeguards the privacy and confidentiality of customers while allowing their banking records to be used as evidence in legal proceedings. 4 Should banks be concerned about how the new legislation relates to their operational practices? ⌵ Yes, banks should adapt their practices to comply with the new requirements for managing electronic records and ensure they meet the conditions for admissibility of evidence as outlined by the Bill. 5 What provisions does the Bill include for banks regarding electronic records? ⌵ The Bill allows for banking records to be maintained in various formats, including physical, electronic, and cloud-based, and it standardizes certification processes for these records. "The Bill strengthens public confidence by providing a clear, secure and transparent legal framework for the use of banking records in legal proceedings while fully safeguarding the privacy and the confidentiality of customers," Sitharaman said. What does the Bill change? The Bill repeals and replaces the Bankers' Books Evidence Act, 1891, which was framed when banking records were predominantly paper-based. Sitharaman said Parliament was empowered to repeal and re-enact the legislation under Entry 45 of the Union List in the Seventh Schedule of the Constitution.
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